GFY - Godfreys Group

[McLovin]

Interesting move to franchise models... and no mention of inventory obsolescence.
Not sure what their franchise agreement looks like - and more importantly, not sure how they plan on finding buyers for these stores.

Keen to see change in Inventory levels in the next set of financials

I agree about finding buyers. They may find buyers, but will they be the same sort of franchisee that powered the business in the 80's?

It looks as though they are setting up for an impairment of intangibles.

On the plus side, they're expecting sales to be flat for FY17, but underlying (I'm assuming this excludes the $2m restructuring charge???) NPAT will be down up to 1/3.

 

[greggles]

Arcade Finance Pty Ltd have made a conditional off-market takeover bid for Godfrey's Group at 32c per share. The Board of Godfrey's have responded with a "Take no Action" recommendation while they consider the offer.

It's been a disappointing few years for Godfrey's Group and no doubt shareholders feel stuck between a rock and a hard place.

The share price has risen from 21c to 30c as a result of the bid, but given the deteriorating state of GFY it might be the shareholders best chance to get out at this price.

 

[notting]

You gotta hand it to the old alligator -

99-year-old co-founder John Johnston moved past the crucial 90 per cent mark in his takeover offer.

Godfreys, which operates 200 stores across Australia and New Zealand, listed on the ASX in late 2014 with an issue price of $2.75 per share, but Mr Johnston's Arcade Finance has secured full control with an offer of just 33.5¢.

Godfreys had a market capitalisation of $111 million at the time of the float in 2014, but the takeover bid valued it at just $13 million.

 

[galumay]

Well that sucks! (sorry.)

 

[notting]

Wasn't like he floated it into a strong retail environment too.
Another franchise model gone wrong.
And here is an upside -
Surely someone is running the ruler of RFG, the brands they have are still strong and from $5 to 55c. WOW. That's almost nothing!!
Should buy it myself!

 

[galumay]

Should buy it myself!

I'm in, go you halves. Ramp it on HC, do a quick CR, issue eleventy million options to the directors, move to some little island in the West Indies...

 

[System]

On July 11th, 2018, Godfrey's Group Limited (GFY) was removed from the ASX's official list in accordance with Listing Rule 17.14, following despatch of the compulsory acquisition notices by Arcade Finance Pty Ltd.

 

[sptrawler]

Another one bites the dust, very sad really, it was the goto shop for vacuum bags you couldn't buy elsewhere.

‘Death by a thousand cuts’: Vacuum cleaner retailer Godfreys collapses after 93 years

The retailer, which sold vacuum cleaners and other cleaning devices, has joined a string of other retailers to appoint voluntary administrators in the post-COVID cost-of-living crisis.

www.smh.com.au

Vacuum cleaner retailer Godfreys has collapsed into administration and announced it will shut 54 stores and axe nearly 200 jobs in the next fortnight, leaving its 93-year history of trading hanging in the balance.
The business, founded in 1931 during the Great Depression, has appointed PwC Australia as voluntary administrators after struggling to recover from the COVID lockdowns and contending with a tougher economy and lower sales.